MBS Live: MBS MID-DAY
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FNMA 3.5
101-11 : -0-08
FNMA 4.0
103-16 : -0-06
FNMA 4.5
105-09 : -0-03
FNMA 5.0
107-07 : -0-01
GNMA 3.5
103-09 : -0-08
GNMA 4.0
106-08 : -0-06
GNMA 4.5
108-06 : -0-05
GNMA 5.0
109-20 : -0-01
FHLMC 3.5
101-04 : -0-09
FHLMC 4.0
103-11 : -0-04
FHLMC 4.5
105-00 : -0-03
FHLMC 5.0
106-28 : -0-03
Pricing as of 11:01 AM EST
Morning Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.
10:10AM  :  ECON: New Home Sales Rise in Sept, Prices Fall
(Reuters) - New U.S. single-family home sales rose at their fastest pace in five months in September, a government report showed on Wednesday, but sustained price declines indicated the housing market is far from recovery.

The Commerce Department said sales increased 5.7 percent to a seasonally adjusted 313,000-unit annual rate, as sales in the South logged their fastest pace since April 2010, offsetting a steep decline in the Midwest.

The percent change in overall sales last month was the largest since March, while the sales pace was the fastest since April.

August's sales pace was revised slightly up to 296,000 units from the previously reported 295,000 units. Economists polled by Reuters had forecast sales at a 300,000-unit rate. In the 12 months through September, new home sales were down 0.9 percent.

The Commerce Department report showed the median sales price for a new home fell 3.1 percent last month to $204,400 last month, the lowest since October 2010. Compared to September last year, the median price was down 10.4 percent.

At September's sales pace, the supply of new homes on the market fell to 6.2 months' worth, the lowest since April 2010, from 6.6 months' worth in August. (Reporting by Lucia Mutikani, Editing by Andrea Ricci)
9:30AM  :  German Bundestag Passes EFSF Motion With Large Majority
(Reuters) - Germany's Bundestag lower house of parliament approved a motion to strengthen the euro zone rescue fund via leveraging on Wednesday, providing Chancellor Angela Merkel with the mandate she needs to negotiate at a key euro summit later in Brussels.

The vice president of the lower house said 503 lawmakers had voted in favour of the motion, 89 had voted against and there were 4 abstentions.

The motion states that the European Central Bank (ECB) will no longer need to buy bonds on the secondary markets, and that the rescue fund cannot be financed through the ECB.

(Reporting by Alexandra Hudson and Annika Breidthardt)
8:51AM  :  ALERT: MBS Slightly Weaker But Holding Much Of Yesterday's Gains
So far, we're just seeing a slight correction this morning to an impressive rally yesterday. In fact, some of the weakness on screens at the moment is as simple as that. The fact that 10's trade at 2.13 and Fannie 3.5's at 101-13 is notable for the fact it's so far away from Monday's range. You might even say that yesterday's rally merely had to take some in-fashion lumps and suffer a slight haircut (thankfully not the 50-65% variety that will be discussed for Greece today).

MBS prices and TSY yields have been holding up well following the Durable Goods release, and indeed it's proven (as expected) to not be much of a market mover with EU Summit details looming later today. Despite a few ticks in the red, rate sheets could be closer to unchanged, perhaps even better than yesterday, depending on the lender. Then again, lenders could be cautious ahead of the summit details later today. As far as timing, we don't know exactly when to expect market-moving wires to hit, simply that the hors d'oeuvres start making the rounds at 1:15pm Eastern (we're pretty sure, but this whole "paying attention to other countries besides the USA thing" is still pretty new. Times, they are a-changin'!)
8:37AM  :  ECON: Durable Goods Fall, But Make Good Gains Excluding Transportation
(Reuters) - Demand for a range of long- lasting U.S. manufactured goods rose more than expected in September to post the largest increase in six months, cementing views of a step-up in economic growth in the third quarter, even though new orders for transportation equipment fell.

The Commerce Department said on Wednesday durable goods orders excluding transportation rose 1.7 percent after falling 0.4 percent in August. The rise beat economists' expectations for a 0.4 percent increase.

But a drop in demand for transportation equipment as bookings for motor vehicles and civilian aircraft declined pulled down overall orders 0.8 percent. That followed a 0.1 percent dip in August and was in line with economists' expectations for a 0.9 percent fall.

Transportation orders fell 7.5 percent, the largest decline since April.

The tenor of the report was further strengthened by a 2.4 percent jump in non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending. That was the largest increase since March.

That category increased 0.5 percent in August, and last month's increase was well above economists' expectations for a 0.5 percent rise.

The report was further evidence that economic activity picked up in the third quarter after a weak first half. Though manufacturing has slowed in recent months, the September durable goods report pointed to underlying resilience. (Reporting by Lucia Mutikani, Editing by Andrea Ricci)
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "europe in rally mode"
Victor Burek  :  "german parliement approves plans to leverage euro rescue fund"
Brent Borcherding  :  "As Merkel ends her speech to the Bundestag on her way out to the Euro Summit, here are the main rhetorical conclusions: MERKEL SAYS JUSTIFIABLE TO MAXIMISE EFSF FIREPOWER MERKEL SAYS GERMANY `IS NOT THE NAVEL OF THE WORLD' MERKEL SAYS EURO CAN'T BE ALLOWED TO FAIL MERKEL CITES 'HISTORIC DUTY' TO PRESERVE EUROPE, EURO But none of that compares to what just was the use of the nuclear mutual assured destruction option, to wit Merkel: No one should take another 50 years of peace in Europe for "
Brent Borcherding  :  "Last line of this is quite interesting:"
Matthew Graham  :  "this is a bit of a counterpoint in the data: RTRS- U.S. SEPT DURABLES EX-TRANSPORTATION +1.7 PCT (CONS +0.4 PCT) VS AUG -0.4 PCT (PREV -0.1 PCT) "
Matthew Graham  :  "RTRS - U.S. SEPT DURABLES ORDERS -0.8 PCT (CONS. -0.9 PCT) VS AUG -0.1 PCT (PREV -0.1 PCT) "
Victor Burek  :  "here comes durables"
Brent Borcherding  :  "According to a senior EU source, IMF thinks 60% Greek debt write-down is not enough, and it should be 65% or more "